Budget Impasse Slips Into Road Plan Fight

RICHMOND — The new six-year state transportation plan offers less money but more politics all around.

State transportation officials are poised to whack about 40 percent of project funding from their six-year plan for secondary and urban roads.

They're largely blaming a state budget impasse that has left them wondering about the new fiscal year.

Leading Republicans in the GOP-majority legislature promptly accused Democratic Gov. Timothy M. Kaine of employing scare tactics to win the public relations war in the ongoing budget stalemate.

House Speaker William J. Howell said transportation officials were painting "unnecessary doomsday scenarios" with their release of the draft six-year transportation plan.

Del. Phil Hamilton, R-Newport News, said it was premature to worry about it because a budget deal can be reached in time. He suggested the draft proposal was political posturing.

Transportation Secretary Pierce Homer said ongoing projects will continue under the proposed six-year plan, if adopted. But when it comes to some projects on the drawing board, VDOT has posted a warning sign: Drivers should expect delays.

The city of Hampton would see a general reduction from $26 million to $17.2 million, if the Commonwealth Transportation Board approves the draft plan on June 15.

The state would not reimburse Williamsburg as quickly for a construction project on Richmond Road, a project that the city has funded up front.

One larger project also would be affected: The proposed widening of Interstate 64 at Route 143 would have less money in fiscal years 2010-12.

Newport News Mayor Joe Frank, who hadn't seen the plan, called it "worrisome."

Uncertainty over state funding isn't the only problem, transportation officials said.

Higher petroleum prices have driven up the cost of fuel and asphalt. Contractors are paying more for road-building materials. More development added 388 lane-miles to Virginia's highway network last year.

But the lack of a budget -- which lawmakers were scheduled to approve in March -- is the biggest factor, said Homer. It forces VDOT to rely on older revenue estimates in developing its new six-year plan, and that's not a scare tactic.

"It's very simple arithmetic," he said.

The budget impasse shows no signs of breaking anytime soon. The talks are stuck on a long-term fix for transportation.

The draft of the six-year plan covers fiscal years 2007-12 and totals $6.9 billion. That's almost as high as last year's version of the plan, but VDOT officials said that figure doesn't tell the story.

The state is getting more federal money earmarked for specific projects, and for maintenance, but other road systems are taking a hit because of rising costs and state budget uncertainty:

* Primary -- major roads that are not interstates: a 20 percent cut or $40 million a year.

* Urban -- streets within towns and cities: 41 percent cut or $53 million a year.

"If a project can go to bid in 18 to 24 months, it's basically staying on schedule," Homer said. The fallout hits work that is planned for later or for project reimbursements.

The state has shifted more federal money to maintenance, but that could create a problem for local governments.

Barbara Reese, the state's chief transportation financial officer, said that generally 20 percent of secondary and urban road systems qualify for federal funds. So a city could find itself needing to repair a tiny street, but its funds could not be spent for that, she said.

Mayor Frank said Thursday's announcement was, in one way, totally expected. Local government officials have predicted these outcomes without a substantial investment in transportation. "These things will continue to develop more and more," he said, "because of the failure of the legislature to act." *